If one thing is clear, it's that paradise is no longer cheap. And those who want to stay will have to compete with the rest of the world. The sun in southern Gran Canaria not only shines for tourists, it also heats up a real estate market that is once again coveted by international buyers. According to the Bjurfors Spain index, in May, property prices in the Canary Islands grew by 1,9% monthly and 18,2% year-on-year, placing the archipelago among the territories with the highest appreciation in value in the country. Although the report does not break down by island or municipality, southern Gran Canaria—Maspalomas, Playa del Inglés, Meloneras, and San Agustín—concentrates a substantial portion of Scandinavian interest.
The perfect storm: vacation rentals, limited supply, and new global demand
What's happening in the southern part of the island isn't a passing fad, but the result of a perfect storm: a limited supply of new construction, growing pressure from tourist rentals, and a new wave of global investors. Traditionally, British and German demand is now being joined by Swedes, Americans, Emiratis, and even Poles with high purchasing power. The result: many properties are sold before even reaching the open market. These transactions are direct, discreet, and with rising prices.
Meanwhile, new housing construction remains subdued, and average prices in the Canary Islands are now above €3.000/m², according to Bjurfors. This is well above the national average (€2.391/m²) and that of regions such as Valencia and Tarragona.
Intense May: closed deals and few opportunities in sight
"This is an increasingly selective market, where latecomers pay more," explains the Swedish agency. And they add a relevant fact: the Swedish krona has strengthened against the euro, which acts as an additional incentive for Nordic buyers. In practice, purchasing a home in Spain now represents a "discount" of nearly 5% for those who buy with krona.
In this context, May has been a month of high operational intensity: many visits, many offers, many sales. But it has also seen increased urban development tensions in areas like Mogán and San Bartolomé de Tirajana, where coexistence between residents and tourists is increasingly compromised by real estate pressure.
How far can the climb go?
Bjurfors estimates that prices could rise by an additional 5% to 10% during 2025, driven by land shortages, the rise of short-term rentals, and increasingly price-sensitive international demand. In the long term, southern Gran Canaria seems destined to consolidate its position as one of the country's most sought-after real estate hubs, but the challenge will be to prevent this rush for real estate from sidelining local residents.
